Goldman Sachs to spin out technology platform GS DAP into independent business
Goldman Sachs says it is exploring “strategic opportunities” to spin out its blockchain-based technology platform, GS DAP, into a standalone business.
Goldman Sachs to spin out GS DAP
Operating as part of Goldman Sachs’ Digital Assets business since launching in 2022, GS DAP applies smart contracts to digitise and manage the asset lifecycle for institutional clients through a shared, immutable platform.
The unit’s potential spin-off is set to culminate in “an industry-owned distributed technology solution”, independent of Goldman Sachs and its Digital Assets business, and will cultivate “a distributed ecosystem that allows participants to interoperate seamlessly, efficiently, and at scale”, according to the bank’s statement.
With the proposed separation pending regulatory approval, Goldman Sachs adds that it will “continue to scale” its Digital Assets business, while GS DAP will maintain its service delivery.
Mathew McDermott, global head of digital assets at Goldman Sachs, describes permissioned distributed technologies as “the next structural change to financial markets” with the potential to “redefine market connectivity, infrastructure composability, and to deliver a new suite of commercial opportunities for the buy- and sell-side”.
In conjunction with its planned divestiture of GS DAP, Goldman Sachs has also announced Tradeweb as its first strategic partner for the platform.
The New York-headquartered global operator of electronic marketplaces will work with Goldman Sachs to apply trading and liquidity capabilities “across the fixed income spectrum in an effort to bring new commercial use cases to GS DAP”.
